Menino seeks basic cable rate curbs

January 18, 2012|D.C. Denison, Globe Staff

Basic cable rates in Boston have increased by more than 80 percent in the three years since a price-control agreement with the city expired, prompting Mayor Thomas M. Menino to once again seek permission to regulate this cable service.

Menino said in a statement yesterday he is again asking the Federal Communications Commission to restore regulatory authority to Boston, the second such request in less than a year. His latest request comes after the Globe reported yesterday that Comcast was again planning to raise prices for its minimal cable offering, this time by 4.9 percent, to $16.58 a month.

“We’d like them to give us the tools to help protect consumers, especially those working families who are disproportionately affected,’’ Menino told the Globe yesterday.

Comcast had previously raised basic cable rates nearly 19 percent just 10 months ago, prompting Menino’s first request to the FCC for power to act against the rising prices.

The FCC declined to comment yesterday, saying it has Menino’s original request under review.

The only other major cable provider in Boston, RCN, is not planning to increase its basic cable prices, but its basic package is still more expensive than Comcast’s. RCN’s basic cable rate is $17.50.

Basic cable service is just that: Customers get about two dozen channels that include their local networks and public television stations, and a handful of lesser-known channels, such as community access and municipal providers. About 15,000 Comcast customers in Boston get basic cable service.

But the many more customers who buy Comcast’s bundled packages can also expect to pay higher rates. Comcast said its overall average monthly bill for the Greater Boston area will increase 2.9 percent. But Comcast spokeswoman Doreen Vigue said the majority of Comcast customers will not be affected immediately because they are locked in to multiyear packages and promotions.

She said the increases are being driven by “the impact of higher programming costs and increased operating expenses.’’ She declined to comment on Menino’s request for oversight of Comcast rates.

Comcast, with 1.8 million customers in Greater Boston, is by far the largest provider of cable in Boston. It has 165,000 customers in the city. By comparison, RCN serves 61,000 customers in Massachusetts, and around 16,000 in the city.

But RCN customers can also expect to see higher bills beginning next month, when promotional packages and discounts begin to expire. The average increase for affected customers will be between $2.50 and $7.75 per month.

Verizon’s FiOS cable service, which is available in suburban Boston but not in the city, is not raising rates, said spokesman Phil Santoro.

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